After playing my first game, tarth got smeared early on. The new changes (most of which I feel are awesome) do not seem to benefit Tarth.
I get the idea that Tarth is supposed to be one of the 'warrior races' of men, rebels who favor hit and run tactics as well as 'elite' units, hence the bonus when in small armies. This bonus simply does not work with the current swarm mechanic (which i like for the most part).
If you want Tarth to remain w small armies, I would consider giving them a 'anti-swarm' mechanic. something like 'back to back'- your soldiers stand back to back, preventing them from becoming surrounded. Effectively, if two tarth units are next to each other they cant be swarmed. (this also may be a cool mechanic for warrior and defender heroes).
Additionally, the 'racial combat abilities' dont seem to fit. If tarth is 'highly mobile hit and run fighters', Altair's 'rush' ability seems to more fit with Tarth. Switching these two combat abilities seem to fit more thematically, and may actually help tarth counter the swarm more effectively (use their 'tarth blood' initiative and attack bonus w rush's mobility to 'even the odds' before their opponent has chance to respond).